Industry News

Real estate refinancings jump

Borrowers try to lock in rates before further increases

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Overall mortgage applications were up 2 percent last week on a seasonally adjusted basis from the week before, taken higher by a surge in refinancings, the Mortgage Bankers Association reported today. The seasonally adjusted refinance index increased by 9.5 percent to 1,748.7 from 1,597 one week earlier, while the purchase index decreased by 3 percent to 397.9 from 410.2 the previous week. The refinance share of mortgage activity increased to 43.7 percent of total applications from 40.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 27 percent of total applications from 25.5 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.36 percent from 6.32 percent. Points including the origination fee increased to 1.11 from 1.06 for 80 percent loan-to-value-ratio loans. Points, which are fees charged by lenders for loan processing, are expressed as a percent of the total loan amount. The ...